Other benefits cited include:
- Exchange access for part-time employees – 31%,
- Exchange access for pre-65 retirees – 23%, and
- Option to terminate coverage, knowing employees will have other options – 16%.
However, 93% of respondents indicated they are at least somewhat concerned over additional administrative obligations. More than half (56%) said new reporting and disclosure obligations will significantly increase their administrative responsibilities. Employers reported, on average, that it will cost $1 –$3 per employee, per new notice issued if the notice cannot (under federal rules) be distributed electronically.
Other concerns cited include:
- Potential impact of the employer “play or pay” mandate in 2014 – 84% at least somewhat concerned,
- Cost impact of 2010-11 benefit mandates (elimination of dollar maximums, coverage of adult children, etc.) – 80%,
- Potential cost impact of automatic enrollment requirement in 2014 – 80%,
- The “Cadillac Tax” excise tax on high value coverage in 2018 – 77%, and
- $2,500 cap on health flexible spending account benefits in 2013 – 70%.
Less than half (45%) are at least somewhat concerned over the potential impact of non-discrimination rule applicable to insured medical coverage.
Options employers said they will consider when the “play or pay” mandate begins in 2012 include using a “look-back” period, preferably 12 months, to attempt to manage to an eligible class of employees substantially similar to today’s class (53.5%); reducing the actuarial value of the group health plan (higher deductibles, higher coinsurance percentages, higher copayments, etc.) (46.1%); reducing employer contributions for dependent coverage (44.8%); and reducing employer contributions for employee coverage (44.7%).
Nearly two in 10 (18.8%) said they would consider terminating their group health plan and paying penalties to the insurance exchanges. However, 86% said they will likely continue to offer group coverage in order to attract and retain the talent.The survey results can be viewed from here.
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